Sh. Surinder Pal Uppal vs Income Tax Officer

This assessee’s appeal for assessment year 2017-18 arises against the Commissioner of Income Tax (Appeals)-3, Gurgaon’s order dated 23.12.2025 passed in case no.10725/CIT(A), Gurgaon-3/2019-20 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.

Coming to the assessee’s first and foremost substantive ground raised in the instant appeal, it transpires during the course of hearing that he had declared additional income of Rs.10 lakhs during survey which followed its corresponding tax paid at normal rates whereas the Revenue’s stand is that the same ought to be assessed at the enhanced rate @ 60% under section 115BBE of the Act. The Revenue could hardly dispute that in S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) their lordships have settled the issue that section 115BBE would come into effect on the transaction done on or after 01.04.2017. The assessee is accordingly directed to be assessed under normal provisions only qua the impugned sum of Rs.10 lakhs declared as additional business income. It is further made clear that there should not be any double addition qua the same as it has been the assessee’s stand all along. Necessary computation shall follow as per law.

Next comes the first and foremost disallowance/addition on merits of the assessee’s miscellaneous and other business expenses totaling to Rs. 1 lakh which have been disallowed in both the lower proceedings for the sole reason that the same had been incurred in cash. There is no other finding coming from the assessment order against him. The impugned additions stand deleted in very terms therefore.

Learned counsel does not press for the assessee’s third substantive grievance involving ad-hoc disallowance of Rs. 24,260/- keeping in mind smallness thereof. Rejected therefore.

This assessee’s appeal is partly allowed.